Nasdaq-Listed MicroStrategy, Wary of Looming Dollar Inflation, Turns to Bitcoin and Gold
Publicly traded business intelligence company MicroStrategy said it will invest $250 million of its excess cash in bitcoin, gold and other âalternative assetsâ over the next 12 months as a hedge against U.S. dollar (USD) inflation.Â
- CEO Michael Saylor, who unveiled MicroStrategyâs new capital allocation strategy on a July 28 earnings call, said the weakening USD is no longer a tenable place to park MicroStrategyâs sizable cash reserves. (The firm is sitting on $500 million).
- Near-zero interest rates, infinite helicopter money and the specter of coming inflation are all forces Saylor said are chipping away at the dollar. âIt wouldnât be prudent to continue to hold a large portion of USDâ in the current environment, he said.Â
- While USD yield has effectively gone negative, bitcoin, gold and silver have been gaining strength, even if they may prove more volatile havens, Saylor said. He said bitcoinâs 21 million hard cap bolsters the cryptocurrencyâs appeal as an inflation hedge.
- âIt makes sense to shift our treasury assets into some investments that canât be inflated away,â Saylor said.
- Saylor indicated his bitcoin revelation came after his firm sold the domain âVoice.comâ to crypto project Block.One for $30 million in July 2019.Â
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